types of business Flashcards
define size, what are the sizes of businesses
size: about how big the company’s operations are
micro, small, medium, large, small the medium enterprises (SMEs)
define and give examples of a micro business
a business with fewer than five employees e.g. lawn and landscaping companies, shoemakers
define and give examples of a small business
a business with 5-19 employees e.g. corner store, local mechanic, hairdresser
define and give examples of a medium business
a business with 20-199 employees e.g. service club, hotel/motel, engineering factory
define and give examples of a large business
a business with 200 or more people e.g. woolworths, quantas, mcdonalds
define geographical spread
the presence of a business and the range of its products across a suburb, city, state or country, or the globe
define and give examples of a local business
a business that has a restricted geographical spread; it serves the surrounding area e.g. newsagent, corner store, hairdresser, mechanic, pharmacy
define and give examples of a national business
a business that operates within just one country e.g. Coles, Mecca, commonwealth bank, david jones
define and give examples of a global business
a large company that has branches in many different countries, can also be know as a multinational corporation e.g. coca-cola, mcdonalds, lg, toyota, westfield, google
define and give examples of a small to medium enterprise
firms with fewer than 200 full-time equivalent employees and/or less than $10 million turnover e.g. hair and beauty salons, dental practices, medical centres, bars, cafes, restaurants, gyms
What may push a national business to go global?
if a national business expands and increases sales, running out of new customers and the domestic market becomes saturated therefore wanting to export and sell its product in other countries
define industry
businesses that are involved in similar types of production
define and give examples of the primary industry
includes those business involved in the collection of natural resources e.g. framing, mining, fishing, grazing, forestry
define and give examples of the secondary industry
includes businesses that take a raw material and make it into a finished or semi-finished product e.g. heavy manufacturing, steel and car manufacturers, food processing, oil refining, energy generation
define and give examples of the tertiary industry
involves people performing a vast range of services for other people e.g. retailers, dentists, solicitors, banks, health workers
define and give examples of the quaternary industry
services that involve the transfer and processing of information and knowledge e.g. property, computing, financing, education, telecommunications
define and give examples of the quinary industry
all services that have traditionally been performed in the home e.g. hospitality, tourism, craft-based activities, childcare
what industry employs the most of the labour force and why
quaternary, due to the demand of those jobs
what industry employs the least of the labour force and why
primary, due to the development of technology
what does the secondary industry do?
they take the output of firms in the primary sector (raw materials) and process it into a finished or semi-finished product
define an unincorporated business
they have no separate legal existence from its owner(s) therefore the business and the owner(s) are the same —> this means it is a sole trader or partnership
define an incorporated business
refers to the process companies go through to become a separate legal entity as it own legal entity and the business has taken on a life of its own —> this means it is a private or public company
define a sole trader and examples
a business that is owned and operated by only one person e.g. handyman, hairdresser, local markets stall
define unlimited liability
when the business owner is personally responsible for all the business’s debts, this may include selling personal assets such as property or motor vehicles, to pay for the liabilities of the business. this means legally they (gov) can take any personal items for the debts of the business
